In this paper,in the context of a Cournot oligopoly with differentiated products,we analyze merger effects under two strategic delegations,and the selection of internal incentive mechanisms before and after the merger.First, we show that the firms generally have incentive for merger under any strategic delegation.The incentive for merger will become stronger when the degree of product substitution is lower,and yet the incentive for merger under decentralized delegation is lower than that under c...